IAS 8 para 49, IAS 1 paras 10(f), 106(b), error correction disclosures

SLI Systems limited – Annual report – 30 June 2016

Industry: support services

  1. Summary of significant accounting policies (extract)

(a) Basis of preparation (extract)

There have been no significant changes in accounting policies during the period. These financial statements have been restated to reflect a prior period adjustment as below:

During the year, the Company appointed a specialist indirect tax expert to evaluate previous advice on the Group’s US Sales Tax position. The earlier advice and related treatment of US sales tax resulted in SLI under-returning sales taxes to the US authorities. The Company has made a provision within Trade and other Payables of $664,000 for an estimate of additional sales tax cost, net of expected credits, that relates to previous years.

As the amount relates to previous periods, as required by accounting standards, the amount has been adjusted against opening retained earnings.

The impact of the restatement on these financial statements is as follows:

Year ended 30 June 2015 – $319,000 increase in operating expenses and loss for the year, a $664,000 increase in trade and other payables, $186,000 increase in deferred tax asset and a $478,000 decrease in total equity. This equates to a $0.005 increase in loss per share.

Year ended 30 June 2014 – $236,000 increase in operating expenses and loss for the year, a $345,000 increase in trade and other payables, $97,000 increase in deferred tax asset and a $248,000 decrease in total equity. This equates to a $0.004 increase in loss per share.

sli1

sli2